The loss meant Blues could drop into League One for the first time since 1995, even if they beat Bolton in their last game of the Championship season on Saturday.

Football finance expert Gerald Krasner said there was a real risk the club – valued at £32 million by disgraced owner Carson Yeung last year – could fall into administration if relegation became a reality.

Former Leeds United chairman Mr Krasner, who steered Port Vale and Bournemouth out of administration and towards promotion, derided that figure as being from “cloud cuckoo land”.

And Blues blogger Daniel Ivery said sources had told him the club – bought by Yeung for £81.5 million in 2009 – could change hands for a down payment of just £5 million if they went down.

Bottom of the Championship

Pl

GD

Pts

19

Blackpool

45

-25

46

20

Millwall

45

-29

45

21

Doncaster

45

-30

44

22

Birmingham

45

-16

43

23

Barnsley

45

-32

39

24

Yeovil

45

-28

37

“It’s a massive drop from the Championship to League One,” Mr Krasner said.

“In some ways it’s harder than coming down from the Premier League because there’s no parachute payments.

“I don’t know the ins and outs of the club’s accounts, but £20 million is nothing like the value the club will have in League One.